Benefactor donates R15m to hard-up ANC at 11th hour to pay salaries, settle Sars debt

An ANC member stands outside the the party’s Luthuli House headquarters in the Joburg CBD. Picture: Itumeleng English African News Agency (ANA)

An ANC member stands outside the the party’s Luthuli House headquarters in the Joburg CBD. Picture: Itumeleng English African News Agency (ANA)

Published Dec 24, 2021

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by Ntombi Nkosi and Tarryn-Leigh Solomons

The ANC has received a donation of up to R15 million to pay workers their outstanding salaries and to sort out other urgent tax matters.

The donation comes as an eleventh-hour financial relief for the cash-strapped party that has been battling to remunerate workers over the last few months.

The R15 million was donated by the Batho Batho Trust which lists the ANC as one of its beneficiaries.

The funds were paid into the ruling party's coffers this week after ANC treasurer-general Paul Mashatile made an urgent request for financial assistance on December 17.

In his request, Mashatile stated that the ANC “was facing unprecedented financial challenges” owing to the Political Party Funding Act, among other things, and thus was unable to fulfil its financial obligations.

A letter seen by Independent Media and that was addressed to Mashatile and signed by Batho Batho Trust managing trustee Reverend Molefe Tsele reads: "We understand that the funds will be used towards the payment of overdue salaries and contribute in part towards the settlement of your SARS (South African Revenue Service) obligations."

In stipulating the terms and conditions of the payment to its beneficiary, Batho Batho Trust stated that the money was only released after its investment arm Thebe Investment Corporation (TIC) declared all dividends that were payable to shareholders.

It also states that the money is released to pay salaries for October and November.

Thebe Investments Corporation (TIC) was established in 1992 by Batho Batho Trust.

According to its website, its shareholders include, among others Sanlam which holds a 9.9.66% stake and Umhlomulo Equity Participation "an employee equity participation scheme owns 2.44% of the company’s equity".

ANC national spokesperson Pule Mabe did not respond to questions sent to him on the salary issue.

Tshele confirmed the payment and said that they were approached to assist the ANC with two of their critical matters – overdue debt to SARS and the staff salaries to the staff.

“We have since obtained the approval of all the trustees for the donation for those two reasons. It is important for me to mention that the trust was very concerned about the possibilities for the ANC staff going into Christmas without any resources for their families so we felt that we do have sufficient reserves to assist the ANC with a clear mandate that the donation must be best utilized for those two matters. I am not sure if it is already with them but from our part, we have done that,” said Tsele.

He highlighted it was a terrible thing, adding people should have done more even if they don’t care about the mess of the ANC but shouldn't punish the staff for the mess they are in.

Meanwhile, ANC staff representative chairperson Mvusi Mdala confirmed that all employees had been remunerated for October while payments for November have begun trickling in.

“What is being processed now is November salaries. They (management) started paying it on Wednesday, December 22. We are not sure whether everyone will be paid their November salaries. As for December salaries, that seems to be completely out of reach for now,” Mdala said.

He added that employees would be happy once all outstanding salaries are paid including their provident funds.

The ANC in the Western Cape said it was encouraged that the outstanding salaries had been paid for October while some had received their November salary.

Disgruntled workers in the province also took to the streets in recent months to demand salaries due to them.

Prior to the build-up of the local government elections, workers had indicated they would not participate in campaigning over the non-payment for their salaries.

But Western Cape executive committee member Sifiso Mtsweni said they were informed that salaries for December were also being processed.

“We are encouraged that some of the salaries have been paid to workers,” he said.

In some reports, ANC members have allegedly threatened to drag the ruling party to the Labour Court or the Commission for Conciliation, Mediation and Arbitration (CCMA) should their salaries not be paid.

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